tv Power Lunch CNBC April 29, 2013 1:00pm-2:01pm EDT
found its bottom. i would own it. >> aig ahead of earnings. cheap and sexy, own it. >> huntsman. it's still very bullish. >> have a great rest of the day. more fast coming in at 5:00. follow this market to a new closing high. "power" starts now. >> "halftime" is over. the second half of your trading day begins now. >> indeed it does. up, up, and up. it's the bull run that doesn't want to stop and we're nearing record highs once again. a drug company is in big, big trouble for taking doctors to hooters, of all places. the company stands accused of trying to influence doctors with beer, chicken wings and hooters. the full story straight ahead. and then we are going to talk about this story. basically a major change for american sports. the first active athlete declares that he is gay.
we have the writer who interviewed jason colins. ty is out today and simon is in. hi, simon. >> good afternoon. tech is really doing the business down here. we have got apple up 3.6%. hp, microsoft all leading the dough higher. we actually hit a fresh all-time high today on the s&p 500. so it's a very buoyant market as you can see. stocks powering, boosted from italy. continued strength in the housing market here. the dough utility for the seventh straight session. look at the s&p dividend as well. this despite an article. dividend stocks have gotten
ahead of themselves. pushing that ten-year yield down now to 1.66. i think i'm right in saying we're off our lows. >> pretty flat for the quarter. i want to show you my favorite and that's the select dividend. the white line is the last month. we're looking at last month. johnson & johnson. a lot of consumer names. they pushed the valuations on this rather high. that was the point of the
cyclicals came back but it has been a tough month. >> thank you very much. bob, back to you. >> you mentioned dividend stocks. we're watching apple today. the last trade is up 3.5%. but a high profile tech analyst who has been very bullish on that stock is now out of a job. >> that's right. we are learning that technology analysts have left stern. no comment from stern on why he has left the firm. he was a regular guest on cnbc, best known for his coverage on shares of apple. >> it's at 511 now, do you have a price target on this stock? >> yeah. we right now have an 840 price target based on a reasonable 13 year multiple. we take into account the massive cash ambulanbalance that we hav >> is there an 840? >> it's a 12 month target.
>> that would be a significant movement from here. what is that? 60%. >> right after apple unveiled its iphone 5, he raised his price target to $820. at that point apple was trading in the $720 range. he wrote that the iphone 5 is a significant upgrade and will drive a powerful product cycle. since that came out, we have seen shares drop about 35%. he was not the only analyst with a high price target. also had had hopes. >> deutsche bank also rumored to be involved. it's a big deal for apple in so
many ways. this is a company that needs to borrow money less than anyone in the world. it has less than $149 billion but apple said it's going to return an average of about $30 billion a year to investors by the end of 2015. that includes $50 billion in additional funds and a 15% dividend hike in its filing today it plans to use the money for general corporate purposes. it will be issued as usual in $2,000 denominations apple stocks having one of its best days in the year so far today.
>> they will have to directly connect it to steve cohen. i think at the end of the day, the vastness of sah is a very good vehicle through which to mount defense. you can't hold the person in charge for every inappropriate movement by one of hundreds if not thousands of people who work for him. >> we will see, sue, if that does prove to be an advantage. >> we will. thank you very much. the swiss drug maker is looking
at its second lawsuit in a week. the first suit accuses the company of inducing pharmacies to switch kidney transplant patients to novartis drugs. they are accused of paying kick backs to doctors in exchange for prescribing the novartis drugs. welcome to the family. >> thank you. nice to be here. great to be here. we have all heard stories like this before. doctors handing out pills and getting major kick backs from the drug companies. but this time they are accused of wining and dining doctors at hooters. the name says it all. it was all to increase sales of the company's drugs. this is the including one at the high end sushi restaurant where
doctors racked up $10,000 for one dinner. here is what the attorney has to say. novartis disrupted the process where they steered patients towards a drug. and here is what norvart simpb s. the company disagrees with the way the government has characterized their conduct and stands behind their programs. and one detail, a very interesting note here. companies who break the law tend to get caught up and end up paying huge fines where the behavior seems to go on and just continue. >> thank you so much. >> thank you so much. >> simon, down to you. >> ratings agencies, standard and poors, and morgan stanley have settled two lawsuits dating back to the financial crisis. the lawsuits accuse them of
hiding risky investments. macgr macgraw hill is the parent company. j.c. penney is also moving higher this lunchtime. the company confirming what david had first reported that it has lined up a 5-year financing package from goldman sachs. it is the latest move to sure up its finances without ak fising equity. >> crisis earnings fell as it absorbed the cost of launching new vehicles but it stood by its financial forecast. the company says it had nearly $12 billion of cash on hand, up from $11.6 billion at the end of last year. there is a 50/50 chance that the fiat buyout will be completed by june of next year. >> ben bernanke and fellow
policymakers start a two-day meeting. the highlight may be the difference between the federal government and the fed when it comes to monetary policy. >> this is a really interesting story. with more and more irritation in their voices, officials talk about how congress are working at cross purposes for the federal let's take a look at the differences between two sides of the government. remember the movie cramer versus cramer? this is government versus government. this is taking advantage of the lower rates coming from the federal reserves. three specific things that the government does to make it harder for the fed. tax hikes, especially the payroll tax hikes that seem to have an impact on spending. spending cuts and longer
treadsry matureties. those first two, they are said to take off a point and a half from gdp and to reduce employment by about 800,000 or 750,000 this year. here is the average treasury debt maturity. we have been issuing longer and longer treasury debt while the fed is doing what? taking the treasury debt off the market in the last gdp report, state local and federal governments subtracted 0.8. you can see in two of the past three years federal government outlays have indeed been negative in the last report it took off 0.8 of a percentage point. now, those who support deficit reduction will say it will help us later through lower deficits but it means lower present growth and the fed sees that as a problem. >> steve, thank you. a veteran nba player announces
what will this play out as? will it give other athletes the courage to come out or not? >> one would certainly hope so. part of what made this so interesting is we don't know. i mean, we can speculate and we can make asumgsumptionassumptio. we don't know how this is going to break. >> he is well liked. he is very articulate. he has a fantastic education. certainly he is an athlete that many people look up to. >> absolutely. in some ways you couldn't find a better suited for this. he knows what is coming. he understands the issues and realizes the gravity. we will see. he is 34 years old and towards the end of his career and he doesn't now how he's going to be perceived when he goes into other arenas but he felt this was the right time. i have got to think that by the end of the year he will not be
the only active open player. >> david stern issued his support to him and basically saying that he is opening the door, if you will, for other athletes if they choose to come out. he is a free agent. in your article he mentions he is worried that it might affect his marketability. do you think it will? >> i don't. i think we are past that. if a team needs a back up center with good character and leadership skills he is their guy. i don't think his position is markedly different than it was a week ago. >> what about his ability to attract sponsors and get endorsement deals? do some of that fall by the wayside or does this actually give him more options? >> exactly. exactly. i mean, 30 years ago, martina lost billions of dollars because she said i'm a lesbian.
i think there are a lot of companies looking to align with him. he has suddenly reached a stratospheric level in terms of endorsements that didn't exist yesterday. he said jason has been a widely respected player and teammate throughout his career and we are proud that he has assumed this leadership meantle on this very important issue. will that be influential or not? >> if the league is behind you it helps. if you parse that, i think the implication is that he is a leader. this is not a lone boat in the harbor. i think we're in a much different place than we were a few years ago. the league support is another indication of that. we are seeing this as a pioneer and not a loan actor. >> i just want to chal listening
you on that idea. the reason he says he is raising his hand is because nobody in a major american sport, no male has done this so far and he thinks it's about time. clearly there are costs otherwise there would be more than one. there must be major costs in doing this, whatever you and i might think is right. >> absolutely. and i think we think of costs whether it's locker room or fans. i think jason is vewary of bein defined as the gay player. i think there are all sorts of costs, no question about it. but he did the analysis. clearly this was not done blindly. there was a lot of deliberation there. he thought the benefits would outweigh the risks. >> it's a good article. >> thank you.
(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
6.5% today and gave an upbeat earnings event of the year. the stock is up nearly 20% year to date it's trading at $30.01. >> it's monday. let's analyze the analysts. let's get to it. welcome to the program. ubs is upgrading walt disney to buy with a $72 price target. will become more visible going forward. up about 45% over the last year. michael, you can't help but wonder if perhaps ubs is slightly late to the game here? >> we own disney a long time ago the other thing is they have a huge exposure to latin america
which is going to be in the news with the olympics. latin america is doing very well. >> let's talk about anf. upgrading to outperform. the target is $63. shares are down about 30%. would you catch this one? >> no. i don't like this. i'll tell you why. i think they sell a very high priced product. the numbers showed that the consumer is getting more frugal. they are selling high priced goods to teenagers. i disagree with this call. they have got a 36 price target. made what it calls meaningful programs working through its legacy programs and resolving
its issues over the past six months it has underperformed the market. would you be a buyer here? >> i think you would be a buyer here. that's better than what bank of america has in front of them and i agree they have worked through. i agree with this gar. >> enjoy your day. thank you for joining us there. >> pet line time. it bought an 18% stake in its blogging service for about $586 million. it has an option to increase to 30%. research in motion is higher after launching its keyboard equipped q 10. an apparel maker also gaining ground after being added to the focus list on optimism that it can significantly outperform the broader apparel industry over
the next 12 to 18 months. >> we're going to take a quick break and then another high profile departure. our back story dates higher. and it's been six months since hurricane sandy. the outrage you story of cashing in on the rebuilding efforts. that's also coming up. by going low. tdd# 1-800-345-2550 like offering schwab etfs tdd# 1-800-345-2550 with the lowest operating expenses tdd# 1-800-345-2550 in their respective lipper categories -- tdd# 1-800-345-2550 lower than ishares tdd# 1-800-345-2550 and vanguard. tdd# 1-800-345-2550 and with all our etfs commission-free tdd# 1-800-345-2550 when traded online in a schwab account, tdd# 1-800-345-2550 it leaves our investors with more money to invest. tdd# 1-800-345-2550 something they've come to count on with us. tdd# 1-800-345-2550 so as investors continue to set their portfolio goals high, tdd# 1-800-345-2550 we help keep their costs of investing low. tdd# 1-800-345-2550 give us a call and open an account today. tdd# 1-800-345-2550 carefully consider prospectus information, including tdd# 1-800-345-2550 investment objectives, risks, charges, and expenses. tdd# 1-800-345-2550 request a prospectus by calling schwab at 800-435-4000. tdd# 1-800-345-2550
read it carefully before investing. tdd# 1-800-345-2550 fees and expenses apply. tdd# 1-800-345-2550 investing involves risks, including loss of principal. tdd# 1-800-345-2550 fees and expenses apply. tdd# 1-800-345-2550 everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare.
>> i'm sharon epperson. the final trades are coming in right now and we are looking at gold prices above $14.65 an ounce. it's off of the highs of earlier this morning. a lot of trader ras focused on the european central banks. and we're continuing to look at the physical demand as being a major factor there. the pull back is a bit of a physical factor as they are on holiday. we are continuing to watch what's happening there.
hedge funds pulling back some of their positions there at least fl the futures market and that could have some impact as well. >> thank you. triple digits on the dow. bob has the action. >> helping commodities and commodities stocks. and it's a small risk on today. the sectors holding a little bit better. on the month, i will start talking about this a little more. the growth end of the stock market it's been more of a defensive rally. the major housing etf is at a
five-year high. hospitals are also up at historic highs. analysts notice in-patient rates better than expected. >> thank you very much. big moves in tech as bob just mentioned. let's check in with seema. >> traders that i spoke to say they are finally getting the highly anticipated turn-around in tech. we're seeing a notable move in shares. apple does have an 11% waiting line. and large caps also moving to the upside. the best performing -- biotech name as it continues to see strong demand for its orlando
bill. simon, back to you. >> a lot of action today. >> let's check in with rick in chicago. rick? >> thanks simon. everybody is talking about the low interest rates. how does that stack up? we finished out last year at 176 so obviously these are the lowest yields since december. they were down at 119 today. we are definitely within firing distance. i bet it coordinates with the ecb on thursday. and another market that probably coordinates that gives you a clims into what they are going to do .
firm's 2 trillion dollar balance sheet as well as its global strategy. it is just the late nest departures. he was a member of the firm's 12 member operating committee. he is the ninth member of that committee. to leave in the last 18 months and i am told his seat will remain unfilled for now. simon? >> let's stay with this, if you would. i have got neil wineburg. in three years ten members of the operating commit yoo have gone. and jamie dimtd seems resolutely in position. >> i don't think there is any indication that the board is starting to get itchy. they still support jamie diamond
being chairman and ceo. they cut his salary for last year in half. he said he wanted stability in management. >> the shareholder meeting is may 21 and shareholders will vote on whether they view diamond as being able to keep the chairman and ceo. whatever happens will chart the course for are rest of the year. earlier in april he purchased an office on the ground floor of his apartment building and i believe we have a picture of that. it's a corporate commercial
space. unclear what he plans to use it for but that was definitely a purchase that got a lot of eyebrows raised. >> would he end up working in a little office like that? is that likely? >> i don't know about that. >> it's very easy to criticize but it ease obvious that jamie dimon is well liked. >> nice to see you again. >> thank you as well. sue? >> simon, could this be a positive sign for the economy? the rich are feeling more
optimistic. >> rising stocks and higher incomes. we will tell you what they're buying and which companies may benefit after the break. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. we replaced people with a machine.r, what? customers didn't like it.
this is a stunning work of technology. ♪ this is the 2013 lexus es and the first-ever es hybrid. this is the pursuit of perfection. >> we're at the high of the day. we're up about 106 points right now. the s&p surpassed its all time closing high. we'll see what it does on the close but it's up another 12 points and the nasdaq is strong. it's up a full percent. it's the leader of the major market indexes up 32 points. >> the dream liner is back in the air and in today's yahoo! finance question of the day we ask if you're comfortable flying now in boeing's 787. the majority say yes.
>> we have been hearing a lot about near record highs. i want to hear about what happens next. and who was on herb's 2011 list for the worst ceo and who is now in his good books? you have got to tune in to find out. really big news in the sports world as jason colins, the first male active major athlete comes out. our guest says this is huge. we're going to ask what this means for the business of sports. >> the rich are feeling optimistic and plan to spend more. i would say sum that they are
planning to spend a lot more. more than a quarter of those affluence consumers plan to spend more this year. that's up 3.4%. much faster than the broader gdb growth. this doesn't mean the wealthy are spending recklessly. as always, but they are also still sensitive to value and price. it seems you are never too rich to appreciate a good deal. back to you.
>> never, never too rich. so should the president have chosen a business person instead over a politician? jimmy is a columnist with the american enterprise institute and a cnbc contributor. jimmy, i imagine you think they should have put a business person in there? >> i would like someone who has a different perspective on infrastructure. i think you put a politician in there and they are afflicted by the same disease. they get very dreamy eyed about big projects, particularly rail projects. often we would rather have more
buses than light rail. i'm worried that the thinking is going to be very steal. >> is a politician or somebody who is kind of been brought up in that way better able to get hold of the levers of power? it's about bringing people together in order to get solutions. a business bern sometimes can't do that if you get the gist. >> i'm not sure it matters how efficiently you get somewhere it's not as bad as a lot of the reports say. more user fees, tolls, congestion fees.
i just fear that a lot are not going to think that way. i think a business man would. >> eddie might be the new commerce secretary. she is from a business family would you welcome that? >> if she -- listen, i like a business background. if she's going to tell the president, gee, you know what? we need to get more immigration asap and that we need to get the corporate tax rate down, if she's going to do that she will be a marvelous choice. >> thank you very much. >> it has been six months since hurricane sandy and millions have been donated to rebuild but you have to look out for scammers. our senior correspondent is following the money for us. >> whether you find billions of dollars and thousands of prosquaekts you will find crooks and sandy is not the only place
changes in light of having a child that needs you every moment. i wouldn't trade him for the world. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. if you're caring for a child with special needs, our innovative special care program offers strategies that can help.
>> it has been six months since hurricane sandy smashed into the east coast. americans have donated millions to rebuilding the efforts but there are scams to watch out for and our senior correspondent is here with that part of the story. it's unfortunate but true. >> it seems we see this after every tragedy and hurricane sandy was no exception. >> three people from new jersey allegedly collected thousands of dollars of deposits of would be renters of property that didn't actually exist. and then there is the website for the hurricane sandy erelief foundation.
after acolleging that the operators had their attorney has claimed they are being singled out. these are cautionary tales for all of us who want to help when disaster strikes. >> normally what happens, the tragedy occurs and people's generosity just spikes up we get emotional about what went on. we want to help people because we could be in the same situation so we want to give. >> do nations for sandy relief are far behind those for katrina. even the school shootings in newtown connecticut brought up people who allegedly sought to capitalize on that. allegedly posting as an aunt.
there is boston, a number of appeals have gone out. >> helped raise as many airline miles as possible to help grant more wishes to children with life-threatening conditions. welcome. >> thank you. >> i do want to talk about the anniversary and your call for airline miles. but before we get to that, i would like you to comment on scott's report. you have people donating to you
all the time. but how can they be sure when they're looking at a charity that it's a legitimate charity? are there specific things to you could tell them to watch out for? >> sure. i think that first of all, every portion has to fill out an irs form 90. every good organization should have a website. they are watch dog organizations out there like guide star and others. i think they can be helpful as well. >> let's talk a little about the 33 year anniversary. i have known about your organization for so many years. it's hard to believe that it was 33 years ago that you granted a first wish to a child. >> a kid had leukemia and had a favorite tv show called chips that some of your viewers may
remember watching and he wanted to be a policeman. a small group of volunteers, sawed a uniform, he got to ride in a held continuer and car. fortunately for us and thousands of kids since, that group of volunteers didn't just stop doing what they did and they created an organization called make a wish. >> so that's really the highest cost for you in terms of trying to make those wishes come true. you would like people to donate miles. tell me about that? we all have to travel on airlines that we don't travel on very much.
you get that report with 7,248 miles and they're going to expire z what can you do with them? we feel like we have got a great answer to. that you can donate them to wake a wish. that expiration goes away when those miles are donated and they can help us so much. so many of our wishes involve travel and it's a big expense so we're using them for these kids so that they can have amazing experiences. >> what's the name of the website if people want to donate their miles? >> two ways. wish.org or they can go to their airline. some of the airlines you can donate your miles on their web sides as well. >> best of luck. presh item it. happy anniversary. >> thank you. thank you for having me. >> the new york jets quarter back is reduced by one. we'll tell you who got sacked when we come back. hance to rise. with centurylink as your trusted technology partner,
you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile,
tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 ...until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-877-994-7694 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 will help you get started today. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better,
while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪ >> well the tim tebow experience is over. after one year in which they barely used him. rex ryan said that things did not work out the way that they were planned. tebow said he was disappointed in the move.
the team drafted geno smith making tebow and presumably the starting qb, sanchez, expendable. i never understood the tebow move. >> i think they wanted him to be a swis army knife of a player. check out these markets. if we on the s&p close this level so, a good rally here. 124 points on the dough as you can see. let's check some of the main gainers today. these teches are doing -- obviously in part because of the settlement. we have reached on juan .
>> the thing that doesn't make sense to me too much is the yield on the ten-year note which keeps dropping. and yet at the same time, the stock market is going up. they usually move in different directions. i'm wondering which market is going to be correct can whether it's going be the bond market or the stock market. really not sure. >> david from deutsche bank said on my program earlier today that he thought that the both could actually be maintained at the same time because the fed is keeping interest rates lower and there is no sign of inflation. could it be goldy locks? >> it could be. it could be.